<PAGE>
EXHIBIT 99.1
BNSF
[LOGO]
NEWS
Contact: Richard Russack FOR IMMEDIATE RELEASE
(817) 352-6425
Burlington Northern Santa Fe Reports
Second Quarter Results
. Adjusted earnings of $0.60 per diluted share -- up 11 percent from
second quarter 1999 adjusted earnings of $0.54 per diluted share.
. Revenues of $2.24 billion, an increase of $46 million or 2 percent
over second quarter 1999 revenues of $2.19 billion.
. Second quarter adjusted operating income of $525 million -- $3 million
higher than second quarter 1999 adjusted operating income of $522
million. Adjusted second quarter operating expenses were $43 million
higher than 1999, including a $50 million increase in fuel expenses.
. Second quarter 2000 results include adjustments for pre-tax special
items of $42 million ($26 million after-tax) primarily related to the
reduction and redeployment of employees.
FORT WORTH, Texas, July 25, 2000 - - Burlington Northern Santa Fe
Corporation (BNSF) (NYSE: BNI) today reported adjusted second quarter 2000
earnings of $0.60 per share on a diluted basis, an 11 percent increase from
second quarter adjusted 1999 earnings of $0.54 per share.
"Double-digit revenue increases in our intermodal and automotive business
units resulted in a 2 percent increase in overall revenues despite sluggish coal
and agricultural commodity demand," said Robert D. Krebs, BNSF Chairman and
Chief Executive Officer. "The revenue increase, capital and expense control
initiatives, and the favorable impact of share repurchases
<PAGE>
resulted in strong earnings per share growth and generated more than $200
million of free cash flow during the quarter."
-more-
<PAGE>
BNSF 2Q Earnings / Page Two
Revenues of $2.24 billion for the 2000 second quarter were $46 million
higher than the 1999 second quarter. Intermodal revenues increased $57 million,
or 10 percent, to $654 million principally reflecting higher international
volumes. Automotive revenues improved $22 million, or 20 percent, to $134
million, primarily due to growth in vehicle shipments. Carload revenues reached
$658 million, an increase of $16 million, or 3 percent, from last year due to
increases in most sectors. Coal revenues declined $19 million, or 3 percent, to
$525 million due to the effect on demand of mild weather and high customer
stockpiles. Agricultural commodity revenues decreased $24 million, or 8
percent, to $263 million, primarily due to weak Pacific Northwest and Mexico
corn exports.
Adjusted operating expenses of $1.71 billion were $43 million, or 3
percent, higher than 1999. Fuel expense was $50 million higher than 1999,
despite a 1 percent decrease in consumption, as the average cost of diesel fuel
per gallon, excluding hedge effects, increased 34 cents to 86 cents. Most other
expense categories were down modestly, despite a 3 percent increase in volume.
Adjusted operating income increased to $525 million for the second quarter
2000 from $522 million for the same period in 1999. The adjusted operating
ratio increased slightly to 76.5 percent for the second quarter 2000 compared
with an adjusted operating ratio of 76.2 percent for 1999.
Special Items
During the second quarter 2000, BNSF recorded pre-tax expense of $42
million ($26 million after-tax), primarily related to the reduction and
redeployment of employees, which should result in annual savings of about $10
million when fully implemented. The expense included $25 million for the
reduction of approximately 200 positions and the redeployment of approximately
60 employees to a joint dispatching center in Kansas City, Kansas, in
coordination with Union Pacific Railroad and the Kansas City Terminal Railway,
and $17 million for the loss of previously earned state tax incentives due to
lower employment levels.
-more-
<PAGE>
BNSF 2Q Earnings / Page Three
Six Month 2000 Results
BNSF's adjusted earnings for the six months ended June 30, 2000, were $1.14
per diluted share, a 10 percent increase from 1999 adjusted earnings of $1.04
per diluted share. Revenues for the six months ended June 30, 2000, were $4.5
billion, up $101 million or 2 percent. Adjusted operating expenses of $3.4
billion for the six months ended June 30, 2000, increased by $68 million or 2
percent. Fuel expense was $96 million higher than 1999, despite a 1 percent
decrease in consumption, due to higher fuel prices. Adjusted operating income
was $1.04 billion for the first six months of 2000 compared with $1.00 billion
for 1999. The adjusted operating ratio improved to 76.9 percent for 2000
compared with 77.1 percent a year earlier.
Common Stock Repurchases
During the second quarter, BNSF repurchased 21.6 million shares at an
average price of $24.04 per share, bringing total repurchases under BNSF's 90
million share-repurchase program to 75.4 million shares through June 30, 2000,
at an average price of $25.78 per share since the program was initially approved
in July 1997.
Through The Burlington Northern and Santa Fe Railway Company, headquartered
in Fort Worth, Texas, BNSF operates one of the largest rail networks in North
America, with approximately 33,500 route miles of track covering 28 states and
two Canadian provinces.
Consolidated financial statements follow.
Statements made in this release concerning predictions or expectations of
financial or operational performance, or concerning other future events or
results, are "forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially from that
projected in those statements. Important factors that could cause such
differences include those listed in the Management's Discussion and Analysis
sections of BNSF's reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission.
<PAGE>
Burlington Northern Santa Fe Corporation
Consolidated Statement of Income
(Unaudited. In millions, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ------------------------
Adjusted (a) 2000 1999 2000 1999
------------ ------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues $ 2,235 $ 2,189 $ 4,473 $ 4,372
------- ------- ------- -------
Operating Expenses
Compensation and benefits 677 679 1,375 1,369
Purchased services 227 231 458 460
Depreciation and amortization 223 222 445 441
Equipment rents 176 181 355 374
Fuel 219 169 430 334
Materials and other 188 185 375 392
------- ------- ------- -------
Total Operating Expenses 1,710 1,667 3,438 3,370
------- ------- ------- -------
Operating Income 525 522 1,035 1,002
Interest Expense 115 98 219 192
Other Income (Expense) - Net (8) (12) (23) (21)
------- ------- ------- -------
Income Before Income Taxes 402 412 793 789
Income Tax Expense 153 155 301 296
------- ------- ------- -------
Net Income $ 249 $ 257 $ 492 $ 493
======= ======= ======= =======
Earnings Per Share
Basic Earnings Per Share $ 0.60 $ 0.55 $ 1.14 $ 1.05
------- ------- ------- -------
Diluted Earnings Per Share $ 0.60 $ 0.54 $ 1.14 $ 1.04
------- ------- ------- -------
Average Shares Outstanding
Basic 417.1 467.5 430.7 468.4
======= ======= ======= =======
Diluted 418.4 471.5 432.0 473.0
======= ======= ======= =======
Operating Ratio 76.5% 76.2% 76.9% 77.1%
------- ------- ------- -------
</TABLE>
(a) 2000 earnings adjusted to exclude special items of $42 million ($26 million
after-tax) related to the reduction and redeployment of employees.
Including the special items, second quarter and year-to-date earnings per
share would have been $0.53 and $1.08, respectively, on a diluted basis.
1999 earnings adjusted to exclude special items of $31 million ($19 million
after-tax) which included adjustments for reorganization costs and
environmental expenses, partially offset by a credit for the reversal of
liabilities associated with the consolidation of certain clerical work-
forces. Including the special items, second quarter and year-to-date
earnings per share would have been $0.50 and $1.00, respectively, on a
diluted basis.
<PAGE>
Burlington Northern Santa Fe Corporation
(Unaudited. In millions)
Condensed Consolidated Balance Sheet
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
-------- ------------
<S> <C> <C>
Assets
Cash and cash equivalents $ 26 $ 22
Other current assets 941 1,044
-------- ------------
Total current assets 967 1,066
Properties and other assets 22,929 22,634
-------- ------------
Total Assets $ 23,896 $ 23,700
======== ============
Liabilities and Stockholders' Equity
Long-term debt and commercial paper due within one year $ 385 $ 158
Other current liabilities 1,832 1,917
Long-term debt and commercial paper 6,311 5,655
Deferred income taxes 6,208 6,097
Other liabilities 1,712 1,701
Stockholders' equity 7,448 8,172
-------- ------------
Total Liabilities and Stockholders' Equity $ 23,896 $ 23,700
======== ============
</TABLE>
Condensed Consolidated Cash Flow Information
<TABLE>
<CAPTION>
Six Months Ended
June 30,
----------------------------------
2000 1999
---------- ------------
<S> <C> <C>
Cash provided by operating activities $ 1,054 $ 1,018
Cash used for capital expenditures (651) (888)
Other investing activities (93) (396)
Dividends paid (108) (113)
---------- ------------
Free Cash Flow (Deficit) after Dividends Paid 202 (379)
Purchase of BNSF common stock (1,103) (334)
Other financing activities 21 87
---------- ------------
Net Debt Incurred $ (880) $ (626)
========== ===========
</TABLE>
<PAGE>
Burlington Northern Santa Fe Corporation
Supplemental Data
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues (In millions)
Carload $ 658 $ 642 $ 1,303 $ 1,261
Intermodal 654 597 1,272 1,169
Coal 525 544 1,054 1,109
Agricultural Commodities 263 287 585 597
Automotive 134 112 258 220
------- ------- ------- -------
Total Freight Revenues 2,234 2,182 4,472 4,356
Other Revenues 1 7 1 16
------- ------- ------- -------
Total Revenues $ 2,235 $ 2,189 $ 4,473 $ 4,372
======= ======= ======= =======
Adjusted operating ratio 76.5% 76.2% 76.9% 77.1%
Revenue ton miles (billions) 119.7 120.2 240.7 239.2
Freight revenue per thousand revenue ton miles $ 18.66 $ 18.15 $ 18.58 $ 18.21
Cars/Units (thousands) 2,012 1,950 4,000 3,876
Average freight revenue per car/unit $ 1,110 $ 1,119 $ 1,118 $ 1,124
Employees (average) 40,021 43,386 39,638 42,988
</TABLE>
